Steel Prices Soaring

Steel Prices Soaring

Date: May 3, 2016
Subject: Steel Prices Continue Upward Climb

Raw steel prices continue to climb and August/September levels are now projected to be up more than 25% since the beginning of this calendar year. Most recently, hot rolled steel coils have increased over $80/ton in the past four weeks. It is apparent that the steel prices have gained traction and continue to increase more than originally forecast. To further complicate matters is the talk of the allocation caused by market demand of some products. Based upon this, Ceco is releasing updated CecoPRO pricing to incorporate our most recent steel guidance. We are committed to immediately advising our Business Partners of the impact these raw material increases will have on our pricing.

CecoPRO 2016 SP3 will be released on May 16, 2016. It is estimated that the price increase on this latest release will average an additional 7-9% range depending on the product mix. The following guidelines will be in effect for new orders and projects in our backlog Gobs currently on hold or out for approval):

  • Any new order received after May 16,2016 must be priced on this new version (2016 SP3).
  • Projects released from our backlog and placed into the current production schedule on or before May 16,

2016 must be updated under CecoPRO 2016 SP2. Any subsequent delays would require an updated price prior to fabrication. Complete delivery of all products released out of the backlog must occur by August 26,2016.

  • Any project released after May 16, 2016 or released and not placed in the current production schedule would require an updated price prior to fabrication.
  • Any current or subsequent quote will be governed by the quote expiration date or must ship date on the proposal or Purchase Order. Any order not placed by the expiration or material not shipped by the date specified will require an updated price.
  • Metl-Span product will also see an average increase of 6-8% in the next CecoPRO release. Ceco will honor all current quotations that ship complete within 75 days of their original quotation date. Any Metl­ Span delivery extending past the 75 day window must be price reviewed on an individual basis.

Ceco will continue to monitor the steel trends to ensure a competitive price. We welcome any intelligence you may gather in your marketplace to help us remain in that position.  It is always Ceco’s intent to respond, whenever possible, to any unique circumstances you may encounter in your specific business climate.

Regards,

Timothy B. Schrock, PE
President